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Services and Nonprofit Organization Marketing

Services and Nonprofit Organization Marketing. 11. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Discuss the importance of services to the economy. 2. Discuss the differences between services and goods.

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Services and Nonprofit Organization Marketing

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  1. Services andNonprofit Organization Marketing 11 chapter Prepared by Deborah Baker Texas Christian University Chapter 11 Version 6e

  2. Learning Objectives 1. Discuss the importance of services to the economy. 2. Discuss the differences between services and goods. 3. Describe the components of service quality and the gap model of service quality. 11 chapter Chapter 11 Version 6e

  3. Learning Objectives (continued) 4. Explain why services marketing is important to manufacturers. 5. Develop marketing mixes for services. 6. Discuss relationship marketing in services. 7. Explain internal marketing in services. 11 chapter Chapter 11 Version 6e

  4. Learning Objectives (continued) 8. Discuss global issues in services marketing. 9. Describe nonprofit organization marketing. 10.Explain the unique aspects of nonprofit organization marketing. 11 chapter Chapter 11 Version 6e

  5. 1 Learning Objective Discuss the importance of services to the economy. Chapter 11 Version 6e

  6. 1 Service The result of applying human or mechanical efforts to people or objects. Chapter 11 Version 6e

  7. 79% of workers are in service sector Services account for 76% of U.S. GDP Service occupations will be responsible for all job growth through 2005 1 The Importance of Services Chapter 11 Version 6e

  8. 2 Learning Objective Discuss the differences between services and goods. Chapter 11 Version 6e

  9. Intangibility Characteristics That Distinguish Services Inseparability Heterogeneity Perishability 2 How Services Differ from Goods Chapter 11 Version 6e

  10. Intangibility Services that cannot be touched, seen, tasted, heard, or felt in the same manner as goods. Inseparability A characteristic of services that allows them to be produced and consumed simultaneously. Heterogeneity A characteristic of services that makes them less standardized and uniform than goods. Perishability A characteristics of services that prevents them from being stored, warehoused, or inventoried. 2 Characteristics of Services Chapter 11 Version 6e

  11. 3 Learning Objective Describe the components of service quality and the gap model of service quality. Chapter 11 Version 6e

  12. Reliability Responsiveness Components for Evaluating Service Quality Assurance Empathy Tangibles 3 Service Quality Chapter 11 Version 6e

  13. Reliability The ability to perform the service right the first time. Responsiveness The ability to provide prompt service Assurance The knowledge and courtesy of employees. Empathy Caring, individualized attention to customers. Tangibles The physical evidence of a service. 3 Components of Service Quality Chapter 11 Version 6e

  14. Customer Expected Service GAP 5 Perceived Service Provider Service Delivery GAP 4 Communication with Customers GAP 1 GAP 3 Quality Specifications GAP 2 Mgmt perception 3 The Gap Model of Service Quality Chapter 11 Version 6e

  15. 4 Learning Objective Explain why services marketing is important to manufacturers. Chapter 11 Version 6e

  16. 4 Services Marketing in Manufacturing Services offer Competitive Advantage Chapter 11 Version 6e

  17. 5 Learning Objective Develop marketing mixes for services. Chapter 11 Version 6e

  18. People Processing Product (Service) Strategy PossessionProcessing InformationProcessing 5 Marketing Mixes for Services Chapter 11 Version 6e

  19. CoreService The more basic benefit the consumer is buying. Supplementary Service A group of services that support or enhance the core service. 5 Core and Supplementary Services Chapter 11 Version 6e

  20. Advice and information Problem solving Order taking Overnight transportation and delivery of packages Billing statements Supplies Tracing Pickup Documentation 5 Core and Supplementary Services Chapter 11 Version 6e

  21. 5 Mass Customization A strategy that uses technology to deliver customized services on a mass basis. Chapter 11 Version 6e

  22. MassCustomization High CustomizedFocus Customization StandardizedFocus Low High Low Cost 5 Mass Customization Technology is the Key Chapter 11 Version 6e

  23. 5 Service Mix Strategy • Determine what new services to introduce • Determine target market • Decide what existing services to maintain and/or eliminate Chapter 11 Version 6e

  24. 5 Distribution Strategy Issues Convenience Number of Outlets Focus forDistribution Strategies Direct vs. Indirect Distribution Location Scheduling Chapter 11 Version 6e

  25. Stress tangible cues Service Promotion Strategies Use personal information sources Create a strongorganizational image Engage in postpurchase communication 5 Promotion Strategy Issues Chapter 11 Version 6e

  26. 5 Price Strategy Define unit of service consumption Pricing Challenges Determine if multiple elements are “bundled” Trends have made pricing an active component Chapter 11 Version 6e

  27. Categories ofPricingObjectives Revenue-OrientedPricing Patronage-OrientedPricing Operations-OrientedPricing 5 Pricing Objectives Chapter 11 Version 6e

  28. 6 Learning Objective Discuss relationship marketing in services. Chapter 11 Version 6e

  29. Level 3 Financial, Social, Structural Level 2 Financial, Social Level 1 Financial 6 Relationship Marketing in Services Three Levelsof Relationship Marketing Chapter 11 Version 6e

  30. Degree of service customization Main element of marketing mix Potential for long-term advantage over competitors Level Type of bond One Financial Low Price Low Personal communication Two Financial and social Medium Medium Three Financial, social, and structural Medium to high Service delivery High 6 Relationship Marketing in Services Chapter 11 Version 6e

  31. 7 Learning Objective Explain internal marketing in services. Chapter 11 Version 6e

  32. 7 Internal Marketing Treating employees as customers and developing systems and benefits that satisfy their needs. Chapter 11 Version 6e

  33. Competing for Talent Offeringa Vision TrainingEmployees StressingTeamwork Empowerment KnowingEmployees’ Needs RewardingPerformance InternalMarketingActivities 7 Internal Marketing Activities Chapter 11 Version 6e

  34. 8 Learning Objective Discuss global issues in services marketing. Chapter 11 Version 6e

  35. Financial Construction Engineering Insurance U.S. is world’s largest exporter of services Restaurant Chains 8 Global Issues in Services Marketing Chapter 11 Version 6e

  36. 9 Learning Objective Describe nonprofit organization marketing. Chapter 11 Version 6e

  37. 9 Nonprofit Organization Marketing An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Chapter 11 Version 6e

  38. Nonprofit Organizations Government Private Museums Theaters Schools Churches Other Non-government 9 Nonprofit Organizations Chapter 11 Version 6e

  39. Market intangible products Shared Characteristics with Service Organizations Production requires customer’s presence Services vary greatly Services can not be stored 9 Nonprofit Organization Marketing Chapter 11 Version 6e

  40. Identify Desired Customers Specify Objectives Develop, manage, eliminate programs/services Set prices Schedule events Communicate through advertising/PR 9 Nonprofit Organization Marketing Activities Chapter 11 Version 6e

  41. 10 Learning Objective Explain the unique aspects of nonprofit organization marketing. Chapter 11 Version 6e

  42. Unique Aspects of Marketing of NonprofitOrganizations Market Objectives MarketingMixes Target Markets 10 Unique Aspects of Nonprofit Organization Marketing Strategies Chapter 11 Version 6e

  43. Users Payers Donors Politicians Appointed officials Media General Public 10 Market Objectives Provide Services to: Chapter 11 Version 6e

  44. Apathetic or strongly opposed targets Pressure to adopt undifferentiated segmentation Complementary positioning 10 Target Markets Unique Issues of Nonprofit Organizations Chapter 11 Version 6e

  45. Benefit Complexity Weak Benefit Strength Low Involvement 10 Product Decisions Distinctions betweenBusiness and NonprofitOrganizations Chapter 11 Version 6e

  46. ProfessionalVolunteers Sales PromotionActivities Public ServiceAdvertising Licensing 10 Promotion Decisions Nonprofit Organization Promotion Decisions Chapter 11 Version 6e

  47. Pricing Objectives Nonfinancial Prices Characteristics Distinguishing Pricing Decisionsof Nonprofit Organizations Indirect Payment Separation BetweenPayers and Users Below-Cost Pricing 10 Pricing Decisions Chapter 11 Version 6e

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